Today's News Mortgage Rates 11-1-2017
By James Brooks
The bond market is up 1/32 (2.36%), which should keep Today's Rates unchanged.
The first of today?s three mortgage-relevant events was the ADP Employment report at 8:15 AM ET. It showed that 235,000 new private-sector jobs were added last month, beating forecasts of 217,000. That is bad news for bonds and mortgage rates because it points toward good growth in the employment sector. However, Friday will bring us the monthly government report that includes both private and public-sector data.
The second economic release was the highly important Institute for Supply Management's (ISM) manufacturing index for October that was posted 10:00 AM ET. It came in at 58.7, down from September?s 60.8 and a little lower than the 59.3 that was expected. The decline indicates fewer surveyed manufacturing executives felt business improved last month than in September. That is a sign of manufacturing weakness, making the data favorable for bonds and mortgage rates.
The third event will come this afternoon when the second to last FOMC meeting of the year will adjourn. It is widely expected to yield no change to key short-term interest rates. Chairperson Janet Yellen and friends have indicated they expect to make a rate hike before the end of the year, but it would come as a major surprise if it came at this meeting. That means that market participants are expecting it to come during December?s meeting. The meeting will adjourn at 2:00 PM ET, so any reaction will come during mid-afternoon trading. and does not include economic projections or a press conference. These meetings normally have a strong likelihood of causing volatility in the markets. However, I believe this one will have less of an impact than usual unless there is a surprise in talk of the Fed?s balance sheet reduction plan.
There are a couple of minor economic reports set for release tomorrow morning. They will be addressed in this afternoon?s update that will be posted shortly after the markets have an opportunity to react to today?s FOMC results.
If I were considering financing/refinancing a home, I would.... Lock if my closing was taking place within 7 days... Lock if my closing was taking place between 8 and 20 days... Float if my closing was taking place between 21 and 60 days... Float if my closing was taking place over 60 days from now.